SB158 Alabama 2019 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2019

Title

Taxation, tax credit, authorized for the cost of acquisition and construction of a qualified storm shelter

Summary

SB 158 would create a nonrefundable Alabama income tax credit for costs to construct, acquire, or install a qualified storm shelter that meets FEMA criteria, with one-third of total costs covered over three years and caps of $6,000 for primary-residence shelters and $25,000 for common-use shelters.

What This Bill Does

Establishes an income tax credit for eligible taxpayers who incur costs to construct, acquire, or install a qualified storm shelter. Defines qualified shelters as EF5-tornado-capable designs that are either attached to the homeowner's primary residence (or on the same lot) or placed for common use in a residential development, apartment complex, or condominium, and that meet FEMA minimum criteria. The credit equals one-third of total costs, is provided over three years, is nonrefundable and cannot reduce tax liability below zero, and is claimed yearly for the preceding calendar year; caps apply based on shelter location. The Department of Revenue will provide a form and require documentation of costs and FEMA criteria.

Who It Affects

• Homeowners constructing or installing a qualified storm shelter attached to their primary residence (credit potentially up to $6,000, nonrefundable).
• Owners or developers of residential developments, apartment complexes, or condominiums with common-use shelters (credit potentially up to $25,000 per shelter, nonrefundable).

Key Provisions

• Qualified storm shelter must meet EF5 tornado withstand capability, be attached to the primary residence or on the same lot, or be placed for common use in a residential development, apartment complex, or condominium, and meet FEMA minimum criteria.
• Tax credit equals one-third of total costs for construction, acquisition, or installation, available for three years; nonrefundable and cannot reduce tax liability below zero.
• Annual claim procedure; credit for a shelter placed in service as an attachment to a primary residence may not exceed $6,000, while shelters in developments/apartments/condominiums may not exceed $25,000.
• Department of Revenue to prescribe a claim form requiring documentation of costs and FEMA criteria.
• Effective date: the act becomes law on the first day of the third month after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation